Since past year, the trade war has gutted USA farm exports to China and weighed on both countries' manufacturing sectors. As well as looking to narrow the trade deficit between the two countries, President Donald Trump has repeatedly accused China of stealing trade secrets and forcing foreign companies to hand over technology as a price of entry to the Chinese market.
Trump tweeted, "My respect and friendship with President Xi (Jinping) is unlimited but, as I have told him many times before, this must be a great deal for the United States or it just doesn't make any sense".
Trump, who has railed against what he describes as China's unfair trade practices and threatened to impose punitive levies on all its imports, softened his tone in a series of remarks expressing optimism about reaching a trade deal with Beijing.
"I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don " t make a deal because companies will be forced to leave China for other countries.
"China buys MUCH less from us than we buy from them, by nearly 500 Billion Dollars, so we are in a fantastic position", Trump wrote.More news: A new 'Mortal Kombat' movie will start filming this year
More news: Moon shrinking causes quakes
More news: Everton believe Andre Gomes might join Tottenham Hotspur in the summer
Chinese Foreign Ministry spokesman Geng Shuang also said it was his understanding that China and the United States had agreed to continue "pursuing relevant discussions", cited by Reuters.
If China stops buying American farm products because of tariffs, Trump said, farmers will be compensated.
That was before Trump raised the rate on $200 billion in Chinese products from 10 percent to 25 percent.
He urged US companies to "make your product at home in the United States of America and there is no Tariff". This could have a great effect on companies that manufacture their laptops, smartphones, tablets or other electronics in China, such as Apple and Microsoft, as well as one company based overseas that ships to the U.S.to sell their products. This should have been done by our leaders many years ago. The trade war with China is "a little squabble".
But both sides have expressed willingness to come together and make a trade deal to cool the escalating trade war between the two superpowers. US importers pay the tariffs, and they respond by reducing their profit margins, raising prices, or both.